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Tertiary education expansion and regional firm development

Author

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  • Tobias Schlegel
  • Curdin Pfister
  • Uschi Backes-Gellner

Abstract

This study investigates the impact of a tertiary education expansion on regional firm development, as measured by average profits per firm. We exploit the quasi-random establishment of universities of applied sciences (UASs) – bachelor’s degree-granting three-year colleges teaching and conducting applied research – to construct treatment and control groups and to apply both a difference-in-differences model and an event study design. We find that after the establishment of new UASs in Switzerland, average profits per firm in the treated municipalities increase by 19.6% more than in the control group. This increase corresponds roughly to an additional annual growth in average profits per firm in the treatment group of 0.7%. The effects start shortly after the establishment of UASs but also persist over a period of up to 10 years.

Suggested Citation

  • Tobias Schlegel & Curdin Pfister & Uschi Backes-Gellner, 2022. "Tertiary education expansion and regional firm development," Regional Studies, Taylor & Francis Journals, vol. 56(11), pages 1874-1887, November.
    • Handle: RePEc:taf:regstd:v:56:y:2022:i:11:p:1874-1887
    DOI: 10.1080/00343404.2021.2010695
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    Cited by:

    1. Krieger, Bastian, 2024. "Heterogeneous university funding programs and regional firm innovation," Research Policy, Elsevier, vol. 53(5).
    2. Patrick Lehnert & Madison Dell & Uschi Backes-Gellner & Eric Bettinger, 2024. "The Effect of Postsecondary Educational Institutions on Local Economies: A Bird’s-Eye View," NBER Working Papers 32679, National Bureau of Economic Research, Inc.
    3. Backes-Gellner Uschi & Lehnert Patrick, 2023. "Berufliche Bildung als Innovationstreiber: Ein lange vernachlässigtes Forschungsfeld," Perspektiven der Wirtschaftspolitik, De Gruyter, vol. 24(1), pages 85-97, April.
    4. Uschi Backes-Gellner & Patrick Lehnert, 2021. "The Contribution of Vocational Education and Training to Innovation and Growth," Economics of Education Working Paper Series 0177, University of Zurich, Department of Business Administration (IBW).
    5. Uschi Backes-Gellner & Patrick Lehnert, 2022. "Apprenticeships," Economics of Education Working Paper Series 0194, University of Zurich, Department of Business Administration (IBW).
    6. Kuhn, Andreas, 2022. "The Geography of Occupational Choice: Empirical Evidence from the Swiss Apprenticeship Market," IZA Discussion Papers 15679, Institute of Labor Economics (IZA).
    7. Krieger, Bastian, 2023. "Heterogeneous regional university funding and firm innovation: An empirical analysis of the German excellence initiative," ZEW Discussion Papers 23-006, ZEW - Leibniz Centre for European Economic Research.

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    More about this item

    JEL classification:

    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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